No terms were listed other than that the company intends to sell up to $500 million in common stock. Michaels intends to list on the New York Stock Exchange under the stock ticker “MIK.”
The underwriting group is huge: J.P. Morgan; Goldman, Sachs & Co.; Barclays; Deutsche Bank Securities; BofA Merrill Lynch; Credit Suisse; Morgan Stanley; and Wells Fargo Securities.
If you will recall, Michael’s was taken private in a deal valued at $6 billion back in 2006 during the private equity craze. Private equity backers and owners include affiliates of Bain Capital, The Blackstone Group L.P. (NYSE: BX); and Highfields Capital Management.
The retailer shows in its filing that it has 1,196 stores that consist of 1,066 Michaels Stores and 130 Aaron Brothers stores. Sales were up 4.4% to $4.2 billion in 2011 over 2010 sales and same-store sales were up 3.2%. The company also posted sales growth of 3.7% in 2010 over 2009 on comparable sales growth of 2.5%. During fiscal 2011, Michaels achieved operating income of $569 million, a gain of 16.6% from fiscal 2010 which was 22.9% higher than fiscal 2009.
JON C. OGG
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